This bill, designated the "Municipal Stabilization and Recovery Act," requires a municipality deemed in need of stabilization and recovery to adopt a comprehensive recovery plan, and authorizes the State to stabilize such a municipality experiencing severe fiscal distress if it fails to adopt an acceptable recovery plan within 150 days. The bill defines a "municipality in need of stabilization and recovery" as a municipality that has experienced a decrease of more than 50 percent in its total assessed property values during the five-year period terminating at the end of the tax year immediately preceding enactment of the bill, and has experienced an increase in outstanding debt exceeding 50 percent during the immediately preceding five-year period, as determined by the Director of the Division of Local Government Services. Under the bill, the director may ascertain whether a municipality should be deemed a "municipality in need of stabilization and recovery," and if so, shall recommend that the Commissioner of Community Affairs make such a determination. Following that determination, the bill requires the subject municipality to adopt a recovery plan, which would include a proposed balanced budget for the next fiscal year of the municipality. The plan would be submitted to the Commissioner of Community Affairs for review. The commissioner would be required to accept the plan or reject the plan. If the commissioner accepts the plan, the municipality would be monitored to ensure compliance. If the commissioner rejects the plan, or if the municipality fails to submit a plan or adhere to the plan accepted by the commissioner, the bill authorizes the Local Finance Board, to assume, reallocate to, and vest in the director, any of the functions, powers, privileges, and immunities of the governing body of that municipality set forth in any statute, regulation, ordinance, resolution, charter, or contract to which the municipality is a party that are, or may be, substantially related to the fiscal condition or financial rehabilitation and recovery of that municipality. When exercising powers, the bill requires the director, to the extent practicable, to comply with all notice, hearing, and other requirements to which the municipality in need of stabilization and recovery is generally subject. Although the director shall not be deemed a "public body" pursuant to the "Senator Byron M. Baer Open Public Meetings Act," P.L.1975, c.231 (C.10:4-6 et seq.), the bill provides that the director, to the extent practicable, must comply with its requirements when taking action on behalf of the municipality in need of stabilization and recovery that would otherwise be subject to that act. The bill also authorizes a municipality in need of stabilization and recovery to use early retirement incentives as a mechanism to help stabilize the finances, restructure the debts, or assist the financial rehabilitation and recovery of the municipality in need of stabilization and recovery.